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What’s a Vacancy Permit for a Home Anyway?

Does a Vacancy Permit mean that you need permission to give up occupancy of your home? Well, not exactly.

It’s a term used by insurance companies for limited though costly coverage when a home is left vacant. So what is a vacant home? Insurance companies define a vacant home as one in which the owners have moved out and have no plans of returning. REALTORS® come across this often.

This can happen when you have purchased and moved into another home and your existing home is for sale but sits vacant. An estate sale is another example where the home can be vacant for a time.

According to the Insurance Bureau of Canada, “Insurance coverage on dwelling and contents ceases automatically when the premises have been vacant for more than 30 consecutive days without the insurer’s prior approval.”

So after 30 days that the home sits vacant, insurance coverage will automatically terminate, unless you talk to your provider within the 30-day window and explain your situation, as you don’t want to get caught short.

Your insurer will suggest vacancy insurance, known as a Vacancy Permit. What’s more, vacancy insurance typically will not cover damage or loss caused by leaking water, broken water pipes, freezing and glass breakage. As well, coverage for vandalism lapses immediately once the home is vacant--no 30 day window here.

Other Important Considerations

Whether the insurer grants a vacancy permit is contingent on an individual’s loss history, location and length of vacancy;

Typically a vacancy permit can be obtained for up to 3 months, yet you receive no rebate of the cost should the home sell sooner;

Due to the risks associated with a vacant home, the cost is expensive and may shock you—can amount to double the cost of regular home insurance.

If your insurance lapses, you may be considered a moral hazard and a greater risk by insurance companies. So it can become increasingly difficult and even more expensive to obtain insurance.

Talk to your insurance company or broker early. Price the home to sell so that it does not linger beyond the coverage period. Think twice before you consider risking no coverage.

Century 21 Canada Limited Partnership currently has franchise opportunities available in select markets across Canada. The intent of this communication is for informational purposes only and is not intended to be a solicitation to anyone under contract with another real estate brokerage organization. CENTURY 21® is a registered trademark owned by Century 21 Real Estate LLC, used under license. ® Trademarks of AIR MILES International Trading B.V. Used under license by LoyaltyOne, Inc. and Century 21 Canada Limited Partnership.

Certain listing content on this website has been provided by The Canadian Real Estate Association. The compilation of such Listing Content is owned by The Canadian Real Estate Association and/or its member Boards and Associations and licensed to Century 21 Canada Limited Partnership.